Intermediate Acounting CA1-2

Intermediate Acounting CA1-2 - CA12 (a)

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CA 1-2 (a) In accordance with Statement of Financial Accounting Concepts  No. 1, “Objectives of Financial Reporting by Business Enterprises,”  the objectives of financial reporting are to provide information to  investors, creditors, and others 1. that is useful to present and potential investors and creditors  and other users in making rational investment, credit, and  similar decisions. The information should be comprehensible  to those who have a reasonable understanding of business  and   economic   activities   and   are   willing   to   study   the  information with reasonable diligence. 2. to help present and potential investors and creditors and other  users in assessing the amounts, timing, and uncertainty of  prospective cash receipts from dividends or interest and the  proceeds from the sale, redemption, or maturity of securities or  loans. Since investors’ and creditors’ cash flows are related to 
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